Shares of Hims & Hers Health fell more than 7% on Tuesday after the telehealth company posted a second-quarter loss far wider than expected, even as it raised its full-year revenue guidance above Wall Street estimates. The sharp decline came as the company’s transition from compounded GLP-1 drugs to branded weight-loss treatments drove costs higher, while legal provisions and international expansion weighed on margins.
The company reported a net loss of $0.37 per share for Q2, compared with analysts’ forecast for a loss of just $0.05 per share. Revenue reached $753.2 million, beating the $698.9 million consensus, but total operating costs surged 48% from a year earlier, and cost of revenue more than doubled to $272.4 million. Gross margins contracted for the fourth consecutive quarter.
Hims & Hers raised its fiscal 2026 revenue forecast to $3.1–$3.3 billion, up from a prior range of $2.8–$3 billion, including contributions from its June acquisition of Australian digital health firm Eucalyptus. CFO Yemi Okupe stated the domestic business was already trending above the earlier guidance. However, gross margins are expected to stay below historical levels as branded pharmaceuticals and lower-margin international markets grow.
The margin pressure is tied to the company’s pivot away from compounded GLP-1 medications following a patent infringement lawsuit by Novo Nordisk. Hims recorded $4.6 million in restructuring costs and booked $47.5 million in nonrecurring contingency expenses related to litigation, including a recent FTC complaint alleging deceptive practices. CEO Andrew Dudum emphasized the role of a new AI clinical engine in rebuilding the consumer experience.
Analyst sentiment remains cautious: the consensus rating is “Hold” with an average price target implying a 5% downside. The company continues to target $6.5 billion in revenue and $1.3 billion in adjusted EBITDA by 2030, betting on subscriber growth—19% year-over-year to nearly 2.9 million—and a scaled weight-loss business to drive long-term value.
